Trading analysis

EUR/USD (a 4-hour chart)

The pair showed a weak upward movement yesterday, rising slightly above the local minimum which was updated yesterday.

Bulls are cautious, but the market is ready to meet them with some enthusiasm which gives hope for a continuation of a bullish activity.

The growth of the euro was a surprise, its reason the poor statistics from Germany and not resolved situation around Cyprus.

As we can see the pair was in a correction yesterday. The sell signal is strong and confirmed. The Chinkou Span and Kijun-Sen are above the price chart, the pair is being traded below the Ichimoku cloud. Everything supports a bearish mood of traders.

The pair keeps falling, the current target is the level 1.2760 which is tested, but not consolidated. If the price is fixed at this level, the downward movement may continue to the level 1.2680.

The downward movement will be relevant as long as the pair is trading under the cloud.

Trading in financial markets involves substantial risks, including complete possible loss of investment capital. This activity is not suitable for all investors. High leverage increases the risk (Risk Disclosure).